-Caveat Lector-

Friday September 14 1:11 AM ET

Congress May Limit Suits Against Airlines

By Adam Entous

WASHINGTON (Reuters) - At the urging of American and United airlines,
congressional leaders said on Thursday that they were drafting legislation to
give the carriers some protection from possible lawsuits over this week's
terror attacks.

Lawmakers and aides said legislation limiting the companies' liability could
come to the floor of both the House of Representatives and the Senate in
coming days.

Four commercial airliners, two operated by UAL Corp.'s (NYSE:UAL - news)
United and two by AMR Corp.'s (NYSE:AMR - news) American, were
hijacked on Tuesday. Two crashed into the landmark twin towers of New
York's World Trade Center, demolishing them. A third slammed into the
Pentagon (news - web sites) outside Washington, and the fourth crashed into
a field near Pittsburgh.

Soon after the attacks, representatives of the two airlines approached key
lawmakers with legislative language that would provide American and United
with sweeping protection from liability, congressional aides said.

But Sen. John McCain, the top Republican on the Senate Commerce,
Science and Transportation Committee, said the proposal floated by the
airlines was ``way too broad'' and lawmakers were crafting legislation of their
own that would provide far more limited protection from lawsuits.

``What they were talking about is a great overreach,'' McCain told Reuters of
the airlines' initial proposal, adding that they were seeking almost blanket
protection from lawsuits. ''We think they may need some protections but
certainly not the language we saw,'' he said.

LIMITED TO PASSENGERS

According to aides, McCain and other lawmakers on the Commerce
Committee were drafting a proposal that would limit class-action lawsuits, as
well as restricting legal action by people who were not on board the hijacked
planes. That would include thousands of people injured in the World Trade
Center or by falling debris.

But aides stressed that the families of those who died aboard the flights
could still file suit under the proposed legislation.

House leaders said they were working in concert with the Senate on the
proposal after holding talks with airline executives.

``I do not think that airlines should be held accountable,'' said House
Republican Leader Dick Armey of Texas. ``It seems to me that when they lost
control of their aircraft, they lost control of their liability.''

A top Senate aide said quick action was needed because a rush of lawsuits
could potentially ``bankrupt'' the nation's two largest airlines. ``This was an
act of war, so it's obvious the airlines should have some protection,'' the aide
added.

White House budget director Mitch Daniels said the administration had yet to
``settle on a position'' on the proposed legislation.

An estimated 266 passengers and crew members died when the four
airliners crashed on Tuesday. Overall, the attacks left about 5,000 people
either dead or missing at New York's World Trade Center and close to 200
people either killed or unaccounted for at the Pentagon.

UAL did not answer calls seeking comment, and AMR was not immediately
available for comment.

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